Monday, May 9, 2011

Regional food retailers risk being marginalized by new concepts with smaller footprints, lower cost of goods and faster service. Food retailers must understand the new dynamics in the industry and react properly in order too accelerate growth. The focus is on the Grocerant niche.

Here is what we understand; consumer discontinuity in food retailing began in 2005 and continues. New points of distribution are growing, becoming smaller in size.

“The future has already arrived; it’s just not evenly distributed.” A quote made famous by William Gibson sure comes to mind don’t you think. Fresh prepared “better for you” food and food options are driving the grocerant niche and growing rapidly.

Successful convenience store operators the likes of Sheetz and Wawa once two notable regional players are now seeing 38,000 unit 7 Eleven entering the fresh food meal niche and Casey’s General Stores continues to drive sales and frequency.

Many restaurant companies the ilk of Darden and Brinker will need to undergo continue and additional scrutiny in order to find a repositioned niche that will sustain them over time. Legacy grocery stores that are seemingly stuck in the middle will simply fade away. Wal-Mart’s supply chain advantage and industry research advantages will simply prove too much. The added points of fresh prepared food distribution in the retail channel offered by Walgreens and Rite Aid will renew the local neighborhoods and rekindle community to that sector.

William Gibson quote: “The future has already arrived; it’s just not evenly distributed.” How many of you are prepared for 2010. If you have been waiting to see what’s next? If so you might have just missed the bus.

Since 1991 retail food consultancy Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche for more on Steven A. Johnson and Foodservice Solutions® visit http://www.linkedin.com/in/grocerant, twitter.com/grocerant or Facebook Steven Johnson